Investing in the Indian Real Estate Market – Best Time for NRI’s

Recent trends have shown a rise in expatriate Indians investing in real estate in India over the past few years. Media reports have stated that investments by NRIs in Indian real estate have doubled from USD 5 billion in 2014 to USD 10.2 billion in 2018. As compared to earlier, where in luxury residential properties were the preferred choice for investment, the preference seems to be changing now. With Non-Resident Indian’s (NRIs) looking at investments which yield higher returns, the trend shows an increase in the demand for affordable housing.

The regulatory environment has dramatically evolved over the last one year. Favorable norms for investors and end-users, with increased transparency & accountability as well as the establishment of escrow accounts under the Real Estate (Regulation and Development) Act (RERA), and an encouraging dollar exchange rate for NRIs make it a highly lucrative time to invest in residential property in India.

Factors to keep in mind

A key factor to consider when planning to invest in India is that post the advent of RERA and GST, the market has become more friendly and transparent for the buyer, not just in the commercial space but also for those leaning towards residential properties. Lower rates of residential properties and high demand for commercial spaces is the leading cause for the NRIs’ interest in locations where commercial and residential properties are witnessing a rise in prices.

Attractive Pricing & Exchange Rate

Over the last year, the Indian Rupee has lost close to 13 percent in value vis-à-vis the USD. This has enabled NRIs to make bigger investments in India, especially in the affordable housing segment of the real estate market in fast growing cities like – Bangalore, Chennai, Hyderabad, Coimbatore, Mumbai and Gurgaon to name a few.

A solid push by the Indian Government through multiple initiatives such as ‘Housing for All by 2022’ and 101 Smart Cities has also given a further push to the NRIs interest in buying a home in India. To give an overall boost to the Affordable housing segment, it has been classified as “infrastructure” which would provide tax benefits and subvention schemes to any investor. This adds up to the list of advantages NRI’s get when planning to invest in real estate in India.

A recent survey mentioned India’s urban population is expected to reach 800 million in the next 30 to 35 years, becoming equal in size to India’s rural population. Given this situation, it has become imperative for the Indian Housing Industry to accelerate and rise to the occasion and match the demand. This in turn means, most residential properties would find a buyer or a tenant as soon as they go on the market. That would translate to immediate ROI for any savvy investor.

Affordable Housing Segment

Thanks to the multiple initiatives by the Indian Government, various schemes and special interest rates for NRIs and banks coming forward with attractive plans on home buying, affordable housing segment is one of the fastest growing segments in real estate today. Large and mid-sized residential builders are pumping in investment to offer quality & pocket friendly apartments with a host of amenities to cater to the interests of every member of the family.

Another exciting transformation coming through is the premium range of affordable homes being constructed by builders of high repute like Provident Housing Ltd. (a subsidiary of Puravankara Limited).

Additionally, projects which have been developed (ready to move in) and are in the pre-launch phase (recently launched) are situated in fast growing areas in each city. Projects which you must invest in are:

Provident Neora (pre-launch phase) – ideally located off Thanisandra road in North Bangalore. This is the fastest growing locality of Bangalore with the leading business hub ‘Manyata Tech Park’ located just 4 kms away and also just a 20 minute drive from the Kempegowda International Airport . These are smartly designed 2BHK homes with all necessary amenities and close to major IT Business Parks. You can avail the pre-launch price of USD 63000* (INR 45.90 lacs*) benefit at this point in time.

Projects which are ready-to-move-in with residents living there :

Provident Sunworth (off NICE-Mysore Expressway, Bangalore)

Provident Welworth City (on Doddaballapur Road, Bangalore)

Provident Freedom (near Siruseri IT Park, OMR in Chennai)

Provident Greenpark (off Perur main road in Coimbatore)

Projects under development include:

Provident Skyworth (in Derebail, Mangalore)

Vriksha by Provident (located off Magadi Road in Bangalore)

Provident Rays of Dawn (off NICE-Mysore Road junction, Bangalore)

Kenworth by Provident (PVNR Expressway in Rajendarnagar, Hyderabad)

Provident Park Square (Judicial Layout, Kanakapura Road, Bangalore)

It is the right time to invest in India. It is the right time to invest in a Provident Home.